Deals: CBD yield for suburban vet clinic

A shop leased to a veterinary clinic that sold on a yield of just 1.49% headlines this week’s commercial property deals around Australia.

The price of the North Balwyn shop at 339 Balwyn Rd soared to $779,000 at auction, driving the yield down to levels usually reserved only for CBD commercial properties.

A neighbouring house at 441 Balwyn Rd was auctioned on the same day and was snapped up for $935,000.

Selling agent George Takis, from Teska Carson, says he was stunned by the result.

“Who can explain prices like this? These were extraordinary results driven by extraordinary demand in an extraordinary market,” Takis says.

“In addition we had a tenant who had just spent a lot of money on an upgrade and who wished to make the most of that investment and a local developer with a good feel for what he could offer the market in terms of further development.”

“Ultimately those conditions produced yields you would normally only see in and around the CBD and that was a great result.”

The Department of Child Protection has signed a long-term lease in East Perth

Perth: State Government in East Perth for long haul

Western Australia’s Department of Child Protection has completed one of the largest leasing moves in Perth this year, taking out two floors at an East Perth office building.

The State Government department has leased almost half of the property’s 7060sqm of lettable space at 8 Bennett St in a long-term deal.

The office is fully fitted out and features open-plan workstations and views of the Swan River.

CBRE senior director of office services Andrew Denny, who negotiated the lease, says the large office space allowed the Department of Child Protection to move its employees from numerous sites to the one place.

“The tenant was able to consolidate from several locations into one centralised office location,” Denny says.

“A key attraction of the building is the large rectangular floor plates providing for highly efficient workspace ratios.”

This West Melbourne warehouse was last sold in 1973

Melbourne: Warehouse sells for first time in 42 years

The sale of a West Melbourne two-level warehouse is believed to have set a record for a warehouse of its size in the area.

The 303sqm warehouse at 88 Miller St sold at auction for $2.405 million, a sale price of almost $7,700 per square metre.

The property was bought in 1973 for $73,000 and has remained with the same owner since. It is expected to be developed for residential.

A South Yarra commercial building is expected to be developed into residential dwellings

Melbourne: Developer snares Victorian Aids Council site

A Hong Kong investor has paid $14.6 million for a South Yarra building owned and occupied by the Victorian Aids Council.

The 1030sqm site at 6-8 Claremont St attracted numerous offers during an expressions of interest campaign, with CBRE’s Josh Rutman pointing to the land’s development potential as the key factor in the strong sale.

“As evidenced by this deal, apartment developments in the area have been sold at strong sales rates to a mixture of owner occupiers and investors, both local and offshore,” Rutman says.

“This has been complemented by an up and coming retail precinct, offering a hip and trendy inner city lifestyle.”